Chapter 24. Iron Condors and Double Diagonals

The iron condor trade and the double diagonal trade are popular nondirectional strategies. These trades are designed for a stock or index whose price is expected to remain within a reasonably narrow range during a one-to-two-month time period. Both of these trades are credit trades. That is, the initial result of doing the trade is that cash is brought into your brokerage account. With these credit trades, the plan becomes one of waiting for the time value of the short options to dissipate as the stock price moves in a generally sideways direction.

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